U.S. patent application number 09/940974 was filed with the patent office on 2003-03-06 for method and system for generating a value proposition for a company in an industry.
This patent application is currently assigned to International Business Machines Corporation. Invention is credited to Dickerson, Wayne Lewis JR..
Application Number | 20030046137 09/940974 |
Document ID | / |
Family ID | 25475733 |
Filed Date | 2003-03-06 |
United States Patent
Application |
20030046137 |
Kind Code |
A1 |
Dickerson, Wayne Lewis JR. |
March 6, 2003 |
Method and system for generating a value proposition for a company
in an industry
Abstract
A method and system for generating a value proposition for a
company in an industry is provided. Specifically, under the present
invention, operational metrics and possible solutions are
identified for the industry. Then, the impacts of the solutions on
the operational metrics are assessed. Once the impacts have been
assessed, a current operational performance of the company is
compared to an operational performance of one or more companies
within the industry to expose performance gaps. Then, a value
proposition is generated by identifying a solution based the
impacts to address the exposed performance gaps.
Inventors: |
Dickerson, Wayne Lewis JR.;
(Austin, TX) |
Correspondence
Address: |
HOFFMAN WARNICK & D'ALESSANDRO, LLC
3 E-COMM SQUARE
ALBANY
NY
12207
|
Assignee: |
International Business Machines
Corporation
Armonk
NY
|
Family ID: |
25475733 |
Appl. No.: |
09/940974 |
Filed: |
August 28, 2001 |
Current U.S.
Class: |
705/7.38 ;
705/7.36 |
Current CPC
Class: |
G06Q 10/06 20130101;
G06Q 10/0637 20130101; G06Q 10/0639 20130101 |
Class at
Publication: |
705/10 |
International
Class: |
G06F 017/60 |
Claims
1. A method for identifying a solution to improve a business value
of a company in an industry, comprising the steps of: identifying
operational metrics for the industry; assembling a set of solutions
for the industry; assessing impacts of the solutions on the
operational metrics; comparing a current operational performance of
the company to an operational performance of another company within
the industry to expose performance gaps; and identifying a solution
based upon the impacts to address the exposed performance gaps.
2. The method of claim 1, wherein the identifying step comprises
the step of generating a value proposition by identifying a
solution based upon the impacts to address the exposed performance
gaps.
3. The method of claim 1, wherein the identified solution improves
a business value of the company.
4. The method of claim 1, wherein the operational metrics relate to
viability of a company in the industry.
5. The method of claim 1, wherein the comparing step is performed
after the assessing step.
6. A method for generating a value proposition for a company in an
industry, comprising the steps of: identifying operational metrics
for the industry; assembling a set of solutions for the industry;
assessing impacts of the solutions on the operational metrics;
comparing a current operational performance of the company to an
average operational performance of companies within the industry to
expose performance gaps; and generating a value proposition by
identifying a solution based upon the gaps and the impacts.
7. The method of claim 6, wherein the identified solution improves
a business value of the company.
8. The method of claim 6, wherein the operational metrics relate to
viability of a company in the industry.
9. The method of claim 6, wherein the comparing step is performed
after the assessing step.
10. A method for generating a value proposition for a company in an
industry, comprising the steps of: identifying operational metrics
for the industry; assembling a set of solutions for the industry;
assessing impacts of the solutions on the operational metrics;
comparing a current operational performance of the company to an
average operational performance of companies within the industry to
expose performance gaps, after the assessing step; and generating a
value proposition by identifying a solution based upon the gaps and
the impacts that improves a business value of the company.
11. A system for generating a value proposition for a company in an
industry, comprising: an information system for receiving
operational metrics and a set of solutions for the industry; an
assessment system for assessing impacts of the solutions on the
operational metrics; a comparison system for comparing an
operational performance of the company to an operational
performance of another company within the industry to expose
performance gaps; and a generation system for generating a value
proposition by identifying a solution based upon the impacts to
address the exposed performance gaps.
12. The system of claim 11, wherein the identified solution
improves a business value of the company.
13. The system of claim 11, wherein the operational metrics relate
to viability of a company in the industry.
14. The system of claim 11, wherein the information system further
receives operational performance data of the company and average
operational performance data of the companies within the
industry.
15. A system for generating a value proposition for a company in an
industry, comprising: an information system for receiving
operational metrics, a set of solutions for the industry,
operational performance data of the company, and average
operational performance data of companies within the industry; an
assessment system for assessing impacts of the solutions on the
operational metrics; a comparison system for comparing an
operational performance of the company to an average operational
performance of the companies within the industry to expose
performance gaps; and a generation system for generating a value
proposition by identifying a solution based upon the impacts to
address the exposed performance gaps.
16. The system of claim 15, wherein the identified solution
improves a business value of the company.
17. The system of claim 15, wherein the operational metrics relate
to viability of a company in the industry.
18. A program product stored on a recordable medium for generating
a value proposition for a company in an industry, which when
executed, comprises: program code configured to receive operational
metrics and a set of solutions for the industry; program code
configured to assess impacts of each solution on the operational
metrics; program code configured to compare a current operational
performance of the company to an operational performance of another
company within the industry to expose performance gaps; and program
code configured to generate a value proposition by identifying a
solution based upon the gaps and the impacts.
19. The program product of claim 18, wherein the identified
solution improves a business value of the company.
20. The program product of claim 18, wherein the operational
metrics relate to viability of a company in the industry.
21. The program product of claim 18, wherein the information system
further receives operational performance data of the company and
average operational performance data of the companies within the
industry.
22. A program product stored on a recordable medium for generating
a value proposition for a company in an industry, which when
executed, comprises: program code configured to receive operational
metrics, a set of solutions for the industry, operational
performance data of the company, and average operational
performance data of companies within the industry; program code
configured to determine impacts of the solutions on the operational
metrics; program code configured to compare an operational
performance of the company to an average operational performance of
the companies within the industry to expose performance gaps; and
program code configured to generate a value proposition by
identifying a solution based upon the impacts to address the
exposed performance gaps.
Description
BACKGROUND OF THE INVENTION
[0001] 1. Technical Field
[0002] The present invention generally relates to a method and
system for generating a value proposition for a company in an
industry. More particularly, the present invention provides a
method and system for improving a business value of the company by
identifying an impact-assessed solution based upon the company's
comparative operational performance.
[0003] 2. Background Art
[0004] In business, a company's ability to maximize its operational
performance in relation to the performance of its competitors is
often the difference between success and failure. Accordingly, as
the use of technology in business grows, companies are increasingly
seeking high technology solutions to maximize their operational
performance. Such solutions could include, for example, computer
infrastructure, software, specialized labor, etc. It is often the
case, however, that the health and viability of different
industries are governed by different factors. Moreover, the true
impact of solutions on a company is often not known prior to
implementation. Accordingly, a set of solutions for industry "A"
might not be appropriate for industry "B."
[0005] Heretofore, systems have been created to evaluate business
requirements of a company and apply a solution to enhance the
performance of the company. However, no such system first
determines the key operational metrics that affect performance in
the relevant industry prior to evaluating a particular company.
Specifically, every industry has certain factors that determine the
health and viability of a company therein. For example, in the
grocery store industry, one operational metric could be the rate in
which inventory is turned over. However, this metric might have no
bearing in the accounting professional service industry. When
operational metrics are accurately identified, gaps in performance
of a particular company can be more accurately addressed. In
addition, no existing system determines possible solutions for an
industry prior to evaluating a company. Similar to operational
metrics, solutions could vary depending on the particular industry.
For example, in the accounting professional service industry, one
possible solution could be to insert more trained accountants into
the workforce. However, such a solution would yield little or no
benefit for the grocery store industry.
[0006] Another drawback with existing systems is the failure to
determine the impact that the solutions will have on the
operational metrics. Without doing this, it is impossible to
predict the effect a solution would have on a company's
performance. For example, in the grocery store industry, a solution
could be to implement computer infrastructure to track shipments
coming into a store. However, using such infrastructure could delay
the inventory turnover rate and, thus, adversely affect a company's
performance.
[0007] In view of the forgoing, there exists a need for a method
and system for generating a value proposition for a company in an
industry. Specifically, there exists a need for a method and system
that increases the business value of a company by identifying a
solution based upon its impacts as well as any performance gaps. In
addition, there exists a need for such a method and system to first
identify operational metrics and possible solutions for the
relevant industry, and then assess the impacts of the solutions on
the metrics.
SUMMARY OF THE INVENTION
[0008] The present invention overcomes the drawbacks of existing
systems by providing a method and system for generating a value
proposition. Specifically, the present invention provides a method
and system for increasing the business value of a company in an
industry by identifying a solution based upon its impact and the
company's performance gaps. In general, the method and system will
first identify operational metrics and possible solutions for the
particular industry. Then, the impact of the solutions on the
operational metrics will be assessed. Once assessed, the average
operational performance of the company will be compared to the
average operational performance of one or more companies in the
industry to expose any performance gaps. Based upon the exposed
gaps and the impacts, a solution will be identified to improve the
business value of the company.
[0009] According to a first aspect of the present invention, a
method for identifying a solution to improve a business value of a
company in an industry is provided. The method comprises the steps
of: (1) identifying operational metrics for the industry; (2)
assembling a set of solutions for the industry; (3) assessing
impacts of the solutions on the operational metrics; (4) comparing
a current operational performance of the company to an operational
performance of another company within the industry to expose
performance gaps; and (5) identifying a solution based upon the
impacts to address the exposed performance gaps.
[0010] According to a second aspect of the present invention a
method for generating a value proposition for a company in an
industry is provided. The method comprises the steps of: (1)
identifying operational metrics for the industry; (2) assembling a
set of solutions for the industry; (3) assessing impacts of the
solutions on the operational metrics; (4) comparing a current
operational performance of the company to an average operational
performance of companies within the industry to expose performance
gaps; and (5) generating a value proposition by identifying a
solution based upon the gaps and the impacts.
[0011] According to a third aspect of the present invention a
method for generating a value proposition for a company in an
industry is provided. The method comprises the steps of: (1)
identifying operational metrics for the industry; (2) assembling a
set of solutions for the industry; (3) assessing impacts of the
solutions on the operational metrics; (4) comparing a current
operational performance of the company to an average operational
performance of companies within the industry to expose performance
gaps, after the assessing step; and (5) generating a value
proposition by identifying a solution based upon the gaps and the
impacts that improves a business value of the company.
[0012] According to a fourth aspect of the present invention, a
system for generating a value proposition for a company in an
industry is provided. The system comprises: (1) an information
system for receiving operational metrics and a set of solutions for
the industry; (2) an assessment system for assessing impacts of the
solutions on the operational metrics; (3) a comparison system for
comparing an operational performance of the company to an
operational performance of another company within the industry to
expose performance gaps; and (4) a generation system for generating
a value proposition by identifying a solution based upon the
impacts to address the exposed performance gaps.
[0013] According to a fifth aspect of the present invention, a
system for generating a value proposition for a company in an
industry is provided. The system comprises: (1) an information
system for receiving operational metrics, a set of solutions for
the industry, operational performance data of the company, and
average operational performance data of companies within the
industry; (2) an assessment system for assessing impacts of the
solutions on the operational metrics; (3) a comparison system for
comparing an operational performance of the company to an average
operational performance of the companies within the industry to
expose performance gaps; and (4) a generation system for generating
a value proposition by identifying a solution based upon the
impacts to address the exposed performance gaps.
[0014] According to a sixth aspect of the present invention, a
program product stored on a recordable medium for generating a
value proposition for a company in an industry is provided. When
executed, the program product comprises: (1) program code
configured to receive operational metrics and a set of solutions
for the industry; (2) program code configured to assess impacts of
each solution on the operational metrics; (3) program code
configured to compare a current operational performance of the
company to an operational performance of another company within the
industry to expose performance gaps; and (4) program code
configured to generate a value proposition by identifying a
solution based upon the gaps and the impacts.
[0015] According to a seventh aspect of the present invention, a
program product stored on a recordable medium for generating a
value proposition for a company in an industry is provided. When
executed, the program product comprises: (1) program code
configured to receive operational metrics, a set of solutions for
the industry, operational performance data of the company, and
average operational performance data of companies within the
industry; (2) program code configured to determine impacts of the
solutions on the operational metrics; (3) program code configured
to compare an operational performance of the company to an average
operational performance of the companies within the industry to
expose performance gaps; and (4) program code configured to
generate a value proposition by identifying a solution based upon
the impacts to address the exposed performance gaps.
[0016] Therefore, the present invention provides a method and
system for generating a value proposition for a company in an
industry.
BRIEF DESCRIPTION OF THE DRAWINGS
[0017] These and other features and advantages of this invention
will be more readily understood from the following detailed
description of the various aspects of the invention taken in
conjunction with the accompanying drawings in which:
[0018] FIG. 1 depicts a computer system having a proposition system
according to the present invention.
[0019] FIG. 2 depicts a box diagram of the proposition system of
FIG. 1.
[0020] FIG. 3 depicts a method flow chart according to the present
invention.
[0021] It is noted that the drawings of the invention are not
necessarily to scale. The drawings are merely schematic
representations, not intended to portray specific parameters of the
invention. The drawings are intended to depict only typical
embodiments of the invention, and therefore should not be
considered as limiting the scope of the invention. In the drawings,
like numbering represents like elements.
DETAILED DESCRIPTION OF THE DRAWINGS
[0022] For convenience, the description will have the following
sections:
[0023] I. Definitions
[0024] II. General
[0025] III. Computer System
[0026] IV. Proposition System
[0027] I. Definitions
[0028] Operational Metric--a factor used to measure the health
and/or viability of a company in a particular industry.
[0029] Operational Performance--the performance of a company based
upon the operational metrics for the particular industry.
[0030] Value Proposition--a solution that improves the business
value of a company.
[0031] Performance Gap--the difference in operational performance
of a company when compared to the operational performance of one or
more other companies in the industry.
[0032] Solution--a decision, action, product and/or service that
impacts a recognized problem in a positive manner.
[0033] II. General
[0034] In general, the present invention provides a method and
system for generating a value proposition for a company in an
industry. First, the operational metrics for the relevant industry
will be identified. Operational metrics are the factors that
measure the health and/or viability of a company in the industry.
For example, the grocery store industry could have operational
metrics that include: (1) the rate of inventory turnover; and (2)
the number of customers per day. As indicated above, each industry
could have different operational metrics. Thus, identifying the
operational metrics for the particular industry prior to evaluating
a company allows a significantly more effective analysis to be
performed.
[0035] Similarly, a set of solutions for the industry as a whole
will be assembled. The solutions could be any decision, action,
product and/or service (e.g., computer infrastructure, software,
manpower, consulting arrangement, etc.) that solves a recognized
problem in the industry. Once assembled, the impacts of the
solutions on the operational metrics will be assessed.
Specifically, it must be determined which operational metrics will
benefit and/or will be harmed by the solution. In some cases,
several solutions may benefit a particular operational metric.
However, one solution might be more beneficial than others.
Alternatively, one solution might benefit one operational metric
while harming another. In either case, these impacts should be
assessed. In addition, conflict resolution rules should be utilized
when a solution has a positive impact on one operational metric but
a negative impact on another. For example, solution "A" in the
grocery store industry might make the consumer check out process
more efficient and thus increase the number of customers per day.
However, solution "A" might also drastically reduce the inventory
turnover rate, which might be more harmful to the company than
having a lower number of customers per day. In such a case, the
conflict resolution rules would dictate whether the solution should
be identified for implementation.
[0036] After the impacts of the solutions have been assessed, the
operational performance of the company will be compared to the
operational performance of one or more companies in the industry to
expose any performance gaps. This is generally done in relation to
the identified operational metrics. For example, using the
inventory turnover rate operational metric, grocery store "A" might
have an inventory turnover rate of 50% every seven days, whereas
the grocery stores "B," "C," and "D" average 75% every seven days.
Thus, grocery store "A" has a performance gap of 25% every seven
days. It should be understood that the operational performance of
company "A" need not be compared to multiple other companies, or
the industry as a whole. Rather, the operational performance of
company "A" could be compared to that of a single competing company
(as will be further described below). Based upon the exposed
performance gaps and the assessed impacts, a value proposition will
be generated. Specifically, solutions that increase the business
value of the company by addressing the exposed performance gaps
will be identified. However, in identifying a solution, its impact
is also considered. For example, if solution "A" would improve the
number of customers per day but also drastically harm the inventory
turnover rate, it should be determined whether the solution should
nevertheless be implemented. Since the solutions are identified, in
part, based upon their assessed impacts, the best possible
solutions will be identified for implementation.
[0037] It should be understood that the present invention is
intended to be performed in a closed-loop manner. That is, the
present invention can be repeatedly performed (e.g., on a scheduled
basis) so that a company can be periodically analyzed. Related
systems are open-loop, that is, run once or upon demand. In
addition, it should be appreciated that the present invention can
be implemented as a computer-based system or manually by an
individual. Specifically, an individual "evaluator" could perform
all of the above-indicated steps of the present invention without
using a computer-based system.
[0038] III. Computer System
[0039] Referring now to FIG. 1, a computer system 10 implementation
of the present invention is shown. Computer system 10 generally
comprises memory 12, input/output interfaces 14, a central
processing unit (CPU) 16, external devices/resources 18, bus 20,
and database 22. Memory 12 may comprise any known type of data
storage and/or transmission media, including magnetic media,
optical media, random access memory (RAM), read-only memory (ROM),
a data cache, a data object, etc. Moreover, memory 12 may reside at
a single physical location, comprising one or more types of data
storage, or be distributed across a plurality of physical systems
in various forms. CPU 16 may likewise comprise a single processing
unit, or be distributed across one or more processing units in one
or more locations, e.g., on a client and server.
[0040] I/O interfaces 14 may comprise any system for exchanging
information from an external source. External devices 18 may
comprise any known type of external device, including a CRT, LED
screen, hand-held device, keyboard, mouse, voice recognition
system, speech output system, printer, facsimile, pager, personal
digital assistant, cellular phone, web phone, etc. Bus 20 provides
a communication link between each of the components in the computer
system 10 and likewise may comprise any known type of transmission
link, including electrical, optical, wireless, etc. In addition,
although not shown, additional components, such as cache memory,
communication systems, system software, etc., may be incorporated
into computer system 10.
[0041] Stored in memory 12 is proposition system 24 (shown in FIG.
1 as a software product). Proposition system 24 will be described
in more detail below but generally comprises a method and system
for generating value proposition 46 for company 34 in industry 28.
Specifically, proposition system 24 receives operational metrics
36, solutions 38, and standards 40 relating to industry 28 from
evaluator 26. Industry 28 comprises a set of companies 32 and, as
explained above, each industry could have different operational
metrics 36 and solutions 38. Accordingly, each industry should be
independently analyzed by evaluator 26 to accurately determine all
applicable operational metrics 36 and solutions 38. Once
operational metrics 36 and solutions 38 have been
identified/assembled, the impacts of solutions 38 on operational
metrics 36 should also be assessed. For example, as indicated
above, solutions "A," "B," and "C" might all benefit the number of
customers per day. However, solution "A" might work the best.
Alternatively solution "A" might improve the number of customers
per day, but it might also reduce the inventory turnover rate. Each
such impact should be assessed so that only the best possible
solutions are identified for implementation. Standards 42 provide
the impacts (risk/benefit) for each solution as well as conflict
resolution rules (as will be further described below). Evaluator 26
is preferably an expert individual or system that has been
trained/programmed to determine operational metrics 26, solutions
38, and standards 40 for industry 28. This is preferably done, in
part, by communicating with company 34 and industry 28 to obtain
the most accurate information.
[0042] Once operational metrics 36 have been identified, solutions
38 have been assembled, and the impacts have been assessed, company
34 can be analyzed for performance gaps. Specifically, proposition
system 24 will receive company performance data 42 and average
performance data 44. Company performance data 42 relates to the
operational performance of the company 34 being evaluated. Average
performance data relates to the operational performance of one or
more companies 32 in industry 28. It should be realized that such
performance data can be received by proposition system 24 directly
from industry 28 and company 34, from evaluator 26, or from a third
party source (i.e., purchased from a third party). Since evaluator
26 will communicate with industry 28 and/or company 34 to determine
operational metrics 36, solutions 38, and standards 40, company
performance data 42 and average performance data 44 could be also
communicated to evaluator 26 from industry 28.
[0043] Once all necessary information has been received it can be
stored in database 22. Proposition system 24 will use the received
performance data to compare the operational performance of company
34 to the operational performance of one or more other companies 32
in industry 28 to expose any performance gaps. For example, if
company 34 is a grocery store that has an inventory turnover rate
of 50% every seven days, while the other companies 32 in industry
28 have an average inventory turnover rate of 75% every seven days,
a gap of 25% over seven days is exposed. It should be understood,
however, that the operational performance of company 34 need not be
compared to the average operational performance of industry 28 as a
whole. For example, the operational performance of company 24 could
be compared to an individual company in industry 28 (as will be
further described below).
[0044] Based upon the assessed impacts and the exposed performance
gaps, one or more solutions are identified (i.e., a value
proposition 46 is generated). To base the solutions upon the
impacts and the gaps, standards 40 are utilized. Specifically,
standards 40 could not only provide the risk and benefit of each
solution, but could also provide conflict resolution rules for
dictating when a solution should be identified for implementation.
For example, if a grocery store was sub-par in the rate in which
customers were checked out, a possible solution could be to
implement better computer infrastructure. However, if this solution
would somehow result in a five day delay in the inventory turnover
rate, the solution might not be identified by proposition system
(e.g., if inventory turnover is a more important operational metric
than check out rate). Standards 40 are preferably provided in a
table format that not only correlates solutions to performance gaps
(i.e., provides the risks/benefits of each solution), but also
dictates conflict resolution rules. Since the solutions are
identified based upon the impacts and the performance gaps, they
are tailored to increase business value of company 34.
[0045] It should be appreciated that once all operational metrics
36, solutions 38, and standards 40 have been provided, proposition
system 24 could run this analysis at scheduled intervals by
obtaining the necessary company performance data 42 and average
performance data 44.
[0046] Database 22 provides storage for information necessary to
carry out the present invention. Such resources could include,
inter alia: (1) operational metrics 36; (2) solutions 38; (3)
standards 40; (4) customer performance data 42; and (5) average
performance data 44. Database 22 may include one or more storage
devices, such as a magnetic disk drive or an optical disk drive. In
another preferred embodiment database 22 includes data distributed
across, for example, a local area network (LAN), wide area network
(WAN) or a storage area network (SAN) (not shown). Database 22 may
also be configured in such a way that one of ordinary skill in the
art may interpret it to include one or more storage devices.
[0047] Communication with computer system 10 occurs via
communication links 30. Communications links 30 can include a
direct terminal connected to the computer system 10, or a remote
workstation in a client-server environment. In the case of the
latter, the client and server may be connected via the Internet,
wide area networks (WAN), local area networks (LAN) or other
private networks. The server and client may utilize conventional
token ring connectivity, Ethernet, or other conventional
communications standards. Where the client is connected to the
system server via the Internet, connectivity could be provided by
conventional TCP/IP sockets-based protocol. In this instance, the
client would utilize an Internet service provider outside the
system to establish connectivity to the system server within the
system.
[0048] It is understood that the present invention can be realized
in hardware, software, or a combination of hardware and software.
Moreover, computer system 10 according to the present invention can
be realized in a centralized fashion in a single computerized
workstation, or in a distributed fashion where different elements
are spread across several interconnected systems (e.g., a network).
Any kind of computer/server system(s)--or other apparatus adapted
for carrying out the methods described herein--is suited. A typical
combination of hardware and software could be a general purpose
computer system with a computer program that, when loaded and
executed, controls computer system 10 such that it carries out the
methods described herein. Alternatively, a specific use computer,
containing specialized hardware for carrying out one or more of the
functional tasks of the invention could be utilized. The present
invention can also be embedded in a computer program product, which
comprises all the features enabling the implementation of the
methods described herein, and which--when loaded in a computer
system--is able to carry out these methods. Computer program,
software program, program, or software, in the present context mean
any expression, in any language, code or notation, of a set of
instructions intended to cause a system having an information
processing capability to perform a particular function either
directly or after either or both of the following: (a) conversion
to another language, code or notation; and/or (b) reproduction in a
different material form.
[0049] IV. Proposition System
[0050] Referring now to FIG. 2, a more detailed depiction of
proposition system 24 is shown. Specifically, proposition system
includes information system 50, assessment system 52, comparison
system 54, generation system 56, and schedule system 58.
Information system 50 will receive the operational metrics,
solutions, impacts, standards, company performance data, and
average performance data so that an analysis can be performed. Once
received, this information is preferably stored in the database.
This allows information from numerous companies and industries to
be collected. When an analysis of a particular company is desired,
assessment system 52 will assess the corresponding impacts based
upon the standards. Comparison system 54 will then compare the
operational performance of the company to the operational
performance of one or more companies in the industry to expose any
performance gaps. In a preferred embodiment, the operational
performance of the particular company is compared to the average
operational performance of the industry as a whole (i.e., all other
companies). In an alternative embodiment, the operational
performance of the particular company is compared a single or group
of competing companies. This allows comparisons to be made on a
"best of class basis." Specifically, it could be advantageous to
compare the operational performance of a company to that of
different competing companies depending on the operational metric
at issue. For example, the operational performance of company "A"
could be compared to that of company "B" for inventory turnover
rate, while being compared to company "C" for the number of
customers per day. In either event, the operational performance of
a company being evaluated will be compared to the operational
performance of one or more companies in the industry to identify
any performance gaps.
[0051] Based upon the gaps and the assessed impacts, generation
system 56 will generate a value proposition. Specifically, once the
performance gaps have been exposed, generation system 56 will
identify an appropriate solution based upon the impacts and
conflict resolution rules delineated in the standards. As indicated
above, the standards are preferably a table or the like that
includes solutions, their impacts, and any necessary conflict
resolution rules. Schedule system 58 allows an analysis of a
company to be performed at scheduled intervals. This allows the
present invention to be implemented as a closed-loop system. That
is, a company can be repeatedly analyzed in a continuing effort to
improve its business value.
[0052] It should be understood that the embodiment of proposition
system 24 shown in FIG. 2 is intended to be illustrative only and
other variations could exist. For example, the functions of
proposition system 24 could be performed by a different quantity of
sub-systems than is shown.
[0053] Referring now to FIG. 3, a method 100 according to the
present invention is shown. First step 102 is to identify
operational metrics for the industry. Second step 104 is to
assemble a set of solutions for the industry. Third step 106 is to
assess impacts of the solutions on the operational metrics. Fourth
step 108 of method 100 is to compare a current operational
performance of the company to an operational performance of another
company within the industry to expose performance gaps. Fifth step
110 is to identify a solution based upon the impacts to address the
exposed performance gaps.
[0054] The foregoing description of the preferred embodiments of
this invention has been presented for purposes of illustration and
description. It is not intended to be exhaustive or to limit the
invention to the precise form disclosed, and obviously, many
modifications and variations are possible. Such modifications and
variations that may be apparent to a person skilled in the art are
intended to be included within the scope of this invention as
defined by the accompanying claims.
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